RCEM: Views on Energy News

Thanks to ESCP Europe's Research Centre for Energy Management's  wide network in the academic and business communities, our views on energy news give you comprehensive insight into energy issues. 

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Africa, with its untapped markets and abundant natural recourses, has been the common secret amongst many energy investors over the past couple of decades. Its high growth rates, rapidly growing population and unexploited resources have marked it as the Promised Land for various businessmen. However, results so far have been widely variable.

In trying to explain why Africa has not proved to satisfy the investors' dream, one does not have to go further than the application of simple demand and supply economics. The African population is estimated to more than double itself by 2050.  At the same time, and while the rest of the world is battling to get past the effects of the recent recession, GDP growth rates of 5-8% have been common in many Sub Saharan African countries. Growth rates, which are mostly driven by economic activity in the rapidly urbanised cities. They also illustrate the development of a new working class that is also growing rapidly, along with its purchasing power and its corresponding demands for higher energy consumption.

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